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Avation pushes ahead with fleet expansion

Snapshot

  • Leases commercial passenger aircraft to global airlines
  • Portfolio of 47 aircraft with 17 airline customers
  • Record profits in latest first half
airbus a220-300

Quick facts: Avation PLC

Price: 278 GBX

LSE:AVAP
Market: LSE
Market Cap: £175.5 m
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What Avation does

Avation PLC (LON:AVAP) specialises in leasing commercial passenger aircraft to various airlines across the world.

Listed on the main board of the London Stock Exchange, the company’s customers include Flybe, Virgin Australia, Thomas Cook, Air France, easyJet, Eva Air, Philippine Airlines, Air India, Vietjet Air, Fiji Airways, Mandarin Airlines, Cebu Pacific, Garuda Indonesia, Galistair, airBaltic and Danish Air Transport.

The company’s current fleet is comprised of 47 aircraft including Boeing and Airbus models.

 

Inflexion points

• In mid-May, Avation delivered its sixth new Airbus A220-300 aircraft to Latvian based carrier airBaltic as part of a leasing deal

• Avation added Cebu Air, the largest domestic airline in the Philippines, to its growing roster of customers in May

• The group recently acquired a Boeing 737-800 Next Generation (NG) aircraft, which is currently on lease to Indonesian airline Garuda until mid-2022

 

Record first half results

In its first half results in February, Avation reported a pre-tax profit for the six months ended 31 December of US$14.2mln, up 95% on a year ago, while revenues from its lease rentals jumped 40% to a record US$58.2mln.

Earnings per share (EPS) also essentially doubled to US$0.21 from US$10.9, with an interim dividend of US$0.02 declared in light of the “robust” performance.

Profits had been boosted by the sale of one of Avation’s Airbus A321-200 aircraft in October, for a price the group said was 10% above the planes book value.

 

Blue Sky

In an interview with Proactive in May, Avation’s finance director Richard Wolanski said that the company was growing at a faster rate than its peers, US-based AerCap (NYSE:AER) and Air Lease Corporation (NYSE:AL), and was aiming to double the size of its fleet.

With shares trading at around 288p as of 4 June 2019, Avation carries a market cap of £184.9mln.

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Full interview: Avation PLC soaring as it reports record revenue, profit and...

Avation PLC's (LON:AVAP) Richard Wolanski caught up with Proactive London's Andrew Scott following the release of the aircraft leasing company's full year results to June 2019. The firm achieved both record revenues and profits and investors were rewarded with a bumper dividend pay-out too.

on 11/9/19

2 min read